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Procyclical and countercyclical variables

Index Procyclical and countercyclical variables

Procyclical and countercyclical variables are variables that fluctuate in a way that is respectively positively or negatively correlated with fluctuations in gross domestic product (GDP). [1]

21 relations: Automatic stabilizer, Basel II, Business cycle, Capital adequacy ratio, Correlation and dependence, Credit crunch, Economic policy, Economy, Fair value, Fiscal policy, Government spending, Gross domestic product, Inferior good, Journal of the European Economic Association, Keynesian economics, Laissez-faire, New classical macroeconomics, Progressive tax, Recession, Tax, Unemployment.

Automatic stabilizer

In macroeconomics, automatic stabilizers are features of the structure of modern government budgets, particularly income taxes and welfare spending, that act to dampen fluctuations in real GDP.

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Basel II

Basel II is the second of the Basel Accords, (now extended and partially superseded by Basel III), which are recommendations on banking laws and regulations issued by the Basel Committee on Banking Supervision.

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Business cycle

The business cycle, also known as the economic cycle or trade cycle, is the downward and upward movement of gross domestic product (GDP) around its long-term growth trend.

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Capital adequacy ratio

Capital Adequacy Ratio (CAR) is also known as Capital to Risk (Weighted) Assets Ratio (CRAR), is the ratio of a bank's capital to its risk.

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Correlation and dependence

In statistics, dependence or association is any statistical relationship, whether causal or not, between two random variables or bivariate data.

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Credit crunch

A credit crunch (also known as a credit squeeze or credit crisis) is a sudden reduction in the general availability of loans (or credit) or a sudden tightening of the conditions required to obtain a loan from banks.

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Economic policy

The economic policy of governments covers the systems for setting levels of taxation, government budgets, the money supply and interest rates as well as the labour market, national ownership, and many other areas of government interventions into the economy.

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Economy

An economy (from Greek οίκος – "household" and νέμoμαι – "manage") is an area of the production, distribution, or trade, and consumption of goods and services by different agents.

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Fair value

In accounting and in most Schools of economic thought, fair value is a rational and unbiased estimate of the potential market price of a good, service, or asset.

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Fiscal policy

In economics and political science, fiscal policy is the use of government revenue collection (mainly taxes) and expenditure (spending) to influence the economy.

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Government spending

Government spending or expenditure includes all government consumption, investment, and transfer payments.

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Gross domestic product

Gross domestic product (GDP) is a monetary measure of the market value of all final goods and services produced in a period (quarterly or yearly) of time.

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Inferior good

In economics, an inferior good is a good whose demand decreases when consumer income rises (or demand rises when consumer income decreases), unlike normal goods, for which the opposite is observed.

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Journal of the European Economic Association

The Journal of the European Economic Association is a peer-reviewed academic journal covering all aspects of economics.

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Keynesian economics

Keynesian economics (sometimes called Keynesianism) are the various macroeconomic theories about how in the short run – and especially during recessions – economic output is strongly influenced by aggregate demand (total demand in the economy).

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Laissez-faire

Laissez-faire (from) is an economic system in which transactions between private parties are free from government intervention such as regulation, privileges, tariffs and subsidies.

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New classical macroeconomics

New classical macroeconomics, sometimes simply called new classical economics, is a school of thought in macroeconomics that builds its analysis entirely on a neoclassical framework.

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Progressive tax

A progressive tax is a tax in which the tax rate increases as the taxable amount increases.

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Recession

In economics, a recession is a business cycle contraction which results in a general slowdown in economic activity.

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Tax

A tax (from the Latin taxo) is a mandatory financial charge or some other type of levy imposed upon a taxpayer (an individual or other legal entity) by a governmental organization in order to fund various public expenditures.

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Unemployment

Unemployment is the situation of actively looking for employment but not being currently employed.

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Redirects here:

Counter-cyclical, Countercyclical, Countercyclicality, Pro-cyclical, Procyclical, Procyclical and countercyclical, Procyclicality.

References

[1] https://en.wikipedia.org/wiki/Procyclical_and_countercyclical_variables

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